Hello. I was wondering if there are any indicator(s) by which to recognize an appropriate, or inappropriate royalty percentage on a division order.
I ask because I just received a division order from my second lessee in about six months. My decimal interest from the first lessee was something like .00033462 and the monthly royalties from that company seemed, from a laymen's perspective, to be quite low compared to the lump sum that they offered to buy me out.
The decimal interest from the second lessee on the division order which I just received is .0001473. Just wondering if there is any gauge or standard to tell if the royalty percentage is fair. There are, I BELIEVE, 32 acres in the Bakken on which I have mineral rights. I don't want to start negotiating and seem unreasonable, but also do not want to get undercut which I assume is not totally uncommon given that these firms, understandably, seek to maximize profits in every case. Thanks a lot!